VFF - Here's How These 3 Cannabis Stocks Posted a Profit This Year
A lack of profitability is what makes investing in cannabis very risky. That's why selecting stocks that have been profitable recently is a good way for investors to minimize their overall risk exposure in the industry. A cannabis company that's able to hit breakeven is already several steps ahead of many of its peers.
But cannabis companies can actually achieve profitability in ways unlike businesses in other industries, like fair-value adjustments. Below are three companies that are capable of posting profits and could be good buys today.
Village Farms International (NASDAQ: VFF) is coming off a third-quarter performance in which it posted a loss of $5 million, but that hasn't been the norm for the company. In three of its past four earnings reports, Village Farms finished in the black. However, the company's operating income has consistently been in the negative, as its 100%-owned operations haven't been profitable, generating an operating loss of at least $2 million in each of the past four quarters.